Remortgaging Property

REMORTGAGING – DON’T MESS UP!

Okay, so you are releasing funds or remortgaging your property for a better rate? That should be simple, right?

Always remember that your property is a huge asset. To fully get your money back when selling, all of your documentation must be in order and more crucially, actually physically be there. It is not unheard of in some cases for your loan to be repaid, your lender to close your account and for all to appear fine, but behind the scenes the mortgage has not removed from the Land Register’s records. This can be a huge issue when you sell as your lender has closed your account and has difficulty discharging your last loan. You may also have an issue with locating all your documents for your property.

So far we have highlighted a few issues, but what if you are remortgaging using a fees-free product? The legal firm will be restricted as to what work the lender (your new bank) will pay for and cover. In many cases they might receive around £50 to complete your remortgage for your bank. Although they are required to say that all will be done in a very professional manner, commercial pressures may have an effect on the final service and outcomes – especially the transportation of your documents which are so vital when selling your property. We have found that the insurance, secure delivery and storage of these deeds can exceed £50 alone.

Our advice is simple. Always obtain a copy of ALL the important documents prior to any fees-free remortgage and check that the discharge of your old loan is undertaken as part of the service. Failing this, pay that little bit more and stay in control. You may even find that by avoiding a fees-free product you may obtain a better rate and lower bank arrangement fee (always check with your financial adviser).